To: Wharf Rat who wrote (1202 ) 7/23/2005 9:02:41 AM From: Wharf Rat Read Replies (1) | Respond to of 24214 Japan slips off solar energy pace 07/23/2005 The Asahi Shimbun Germany leapfrogged Japan in 2004 to become the world's fastest growing producer of solar power. Japan still has the largest total capacity at 1.13 million kilowatts, as of the end of 2004, compared with Germany's 790,000 kilowatts. Last year, however, Germany installed enough equipment to generate 360,000 kilowatts, compared with Japan's growth by 270,000 kilowatts, according to figures from the Ministry of Economy, Trade and Industry. Despite Japan's solid 20 percent increase from the previous year, Germany's 140 percent jump easily put it in first place in global growth rankings. Japan had been the fastest growing country in solar power capacity since 1995, when it outpaced the United States. In Germany, the government's new policy prompted a sharp increase in solar power generators, from residential units to 1,000-kilowatt-class plants known as Mega Solar, set up at former mines and other locations. In August 2004, the Berlin government substantially raised the price at which electric power companies are required to purchase electricity produced by solar power. In contrast, Japan has been scaling back its subsidies as prices of residential generators have come down thanks to its financial assistance that dates back to the mid-1990s. Germany's advance is coming fast, but it is not clear whether it will soon overtake Japan in total capacity. In 2003, Japan accounted for about half of the world's overall generation capacity. Germany is having trouble keeping up with demand for solar panels. Still, it appears difficult for Japan to match Germany's annual increase in capacity. A strong growth in residential units is not expected as the government subsidies are slated to be eliminated in March. In addition, Japan does not match Germany's installations of large-scale plants. Experts say Japan needs to offer new incentives to remain a global leader in photovoltaic power generation, a goal that forms part of its efforts to reduce dependence on oil. "It is important for Japan to be the number one in the world," said an official at the Ministry of Economy, Trade and Industry. The official added that the industry ministry will consider new steps to promote solar power in consultation with other ministries and agencies. Japan still reigns the world on a third measurement-solar cell production. The nation has been churning out more batteries than any other country since 1999. Sharp Corp. is the global leader. Other companies, including Kyocera Corp., Mitsubishi Electric Corp. and Sanyo Electric Co., hold large shares.(IHT/Asahi: July 23,2005) asahi.com